In the bright office, Helen sat at her desk, facing the lawyer across from her.
Though she was inclined to believe the words of Ronan Anderson, that young lad, from an emotional standpoint, as a businesswoman, especially when it could involve millions of dollars in business, she couldn't afford to be careless.
The opinions of more professional and trustworthy individuals were quite important.
"Ms. Koch, over the past two days, we have conducted extensive research and practical investigations," said the middle-aged bald man with glasses, whose intelligence perhaps cost him his hair, making his bright Mediterranean forehead especially prominent. "Legally, there are no issues whatsoever. This policy was introduced by the government to attract foreign capital, encourage investment, and stimulate economic prosperity."
Helen nodded lightly, finding Ronan as reliable as she had imagined.
The bald lawyer continued, "In terms of actual operation, there are several German film companies engaged in related businesses, and many successful cases have been facilitated. Hollywood's Paramount Pictures, 20th Century Fox, New Line Cinema, and Constantin Film are among those whose films have benefited from this policy. Additionally, TMG is currently handling the affairs of New Line Cinema's adaptation of J.R.R. Tolkien's fantasy epic 'The Lord of the Rings' trilogy, which is said to be nearing approval."
"Will there be any subsequent troubles? Like retrieval?" Helen asked.
"No," the bald lawyer smiled. "This is a legal regulation, and similar operations have been ongoing for years. It's a completely legal tax avoidance."
He added, "The government introduced this policy precisely to encourage film investment."
With plenty of successful cases to reference, and being a government policy, operational concerns were nonexistent. Helen then asked, "And what about the intermediaries?"
"This policy has spawned some intermediaries," the bald lawyer replied. "Some well-connected and capable lawyers and accountants have entered this industry to assist foreign film projects in obtaining this preferential policy, in exchange for substantial commissions."
He chuckled, "The intermediaries hired by Mr. Anderson are colleagues of mine, specializing in entertainment copyright business. They have handled two film projects in the past, and both were successful. From my personal analysis, the success rate this time remains high."
Helen nodded thoughtfully. "So, you're saying that legal tax avoidance is feasible?"
The bald lawyer was very certain. "Absolutely feasible, provided there's a film collaboration."
After a brief moment of contemplation, Helen made a decision. "Assist Tony in registering a company as soon as possible, and meanwhile, get in touch with Ronan and his team of intermediaries to prepare for the relevant matters."
"Understood," the bald lawyer was prepared. "I'll get right on it."
After the lawyer left, Helen sat quietly in her office, contemplating for a while before picking up the phone.
"Heidi? Yes, it's me, Helen. Do you have time this afternoon? Let's have tea together. Okay, I'll invite a few friends."
"Louise, it's Helen. Heidi and I are meeting for tea this afternoon. Are you joining us? Great, we'll be waiting for you."
"Marina..."
Helen knew many wealthy people, many of whom were troubled by heavy taxes.
Legal tax avoidance was always a topic of great concern for the wealthy.
With the assistance of professionals, Ronan and Tony worked diligently for some time, and soon a company belonging to Tony—Koch Films—was registered.
Ronan's Sandsea Entertainment also signed copyright transfer and leasing agreements with Koch Films. Meanwhile, Muller Lawyer's intermediary team began handling the application for the tax refund policy.
The reason why Hollywood and even some European film companies were eyeing Germany's tax refund was primarily because the refund could be obtained before the film was completed, based on the estimated income. The refund amount was ten percent of the anticipated income, which had to be reasonably justified.
Muller Lawyer's team was not new to this kind of work, having a mature operating method, generally multiplying the budget cost by 1.2 to 1.3.
There were existing cases to reference, such as Tom Cruise's "Mission: Impossible," which also made rounds in Germany. With a film budget of $80 million, the German company estimated an income of $104 million and successfully received a $10.4 million refund.
The estimated income, of course, couldn't be exaggerated, or it wouldn't pass the review.
The intermediary team bundled "Final Destination" and "Kingsman" into one project, with a total estimated income of $50 million.
Furthermore, Muller Lawyer's team was actively lobbying public relations.
In some ways, this intermediary team was like Ronan's professional fixer in his past life.
Connections, channels, and even family background sometimes could directly translate into money.
This was Ronan's first time in Germany. Although he had plenty of theoretical knowledge, he had never actually operated it. Initially, he wanted to collaborate with German film companies, but later opted for the backup plan. The real operation would still rely on the intermediaries in Germany.
In this unfamiliar country, he was more of a follower behind the intermediaries, observing and learning more.
Of course, Tony Koch was also indispensable.
Tony temporarily took leave from the company in Munich and, along with Ronan, devoted himself to the tax refund and other matters for these two films.
"If this thing succeeds, just the extracted commission..." After a busy morning, Tony ate lunch and said to Ronan, "It's equivalent to several years of my salary."
Ronan looked up at him and asked, "After completing these two projects, why don't you resign and specialize in this line? I have many more film projects in the future."
Tony nodded repeatedly. "That's what I'm thinking too. Ronan, you've opened a new world for me!"
Ronan extended his right hand and said, "Here's to a fruitful collaboration."
Tony shook his hand firmly. "Cheers to that." He withdrew his hand and asked, "I wonder how many years this tax refund policy will last."
Ronan shrugged. "I don't know."
Anyway, in his previous life, this policy seemed to still exist in his final year.
The German government's intention in formulating this tax refund policy was good, but nowadays, Hollywood and even some European film companies were to some extent exploiting the loopholes in the policy by collaborating with German film companies.
Many countries have film tax refund incentives, but they are strictly regulated. For example, New Zealand, Canada, and Australia require that over 80% of the film must be shot in their own countries.
Even in the more lenient UK, films must shoot some scenes in the country, and the crew must include British actors, among other requirements.
All in all, Germany belonged to the group with the most lenient tax refund conditions. It didn't require shooting in Germany or using German actors or crew members.
Of course, not every submitted project can pass the review.
This game can only be played with relatively high investment commercial films. The market, economic, and even financial driving force that low-budget art films can provide is indeed limited. The expensive legal fees and intermediary costs are also not something that ordinary small companies or small production films can afford.
"How's it going with Aunt Helen?" Ronan asked at this point.
Tony shrugged. "Very smoothly. Mom has persuaded several friends and business partners, and legal tax avoidance is also what they want. The $40 million will be in place soon."
Ronan intentionally lowered his voice and asked, "What's your cut?"
Tony spread out one hand. "This is the first time, and it's from Mom's friends, so I can't take too much." He shook his head and said, "If you don't enter an industry, you really don't understand it. A tax refund policy actually allows film companies to play tricks."
Ronan chuckled. "It's just a loophole that can be exploited."
"How should my company develop in the future?" Tony asked earnestly. "Can you offer a few suggestions?"
Ronan thought for a moment. Tony's career didn't conflict with his own, and after it was done well, it would still be an asset. "Use your Koch Films to establish a film fund, raise funds from the public within legal limits. In our future cooperation, you can extract higher fees... Well, if your fund actually participates in the investment of my films, it can also enjoy a share of the film profits."
He also had a conscience. "Later, when you have time, you should go to Los Angeles specifically to witness the operating rules of Hollywood."
The allure of Hollywood to overseas financiers was eternal. This batch might retreat, but the next batch would still rush forward, stepping on the "corpses" of their predecessors.
Tony stroked his chin. "Sounds pretty good."
Ronan smiled. If this could happen, there would be a stable source of funding for future film investments.
There is a consensus in Hollywood that the film financing structure is designed to make the financiers bear the greatest risk. Hollywood gets the "subsidy," and distributors make stable profits. Therefore, investing in Hollywood for overseas financiers is undeniably a bit of a sucker's game.
Tony asked again, "Are there many people interested in investing in movies?"
Ronan replied directly, "Hollywood is like a lamp; there will always be moths flying towards it. Attracting moths is not difficult."